Transaction processing

Transaction processing refers to the management and handling of business transactions within an information system or database. It involves the execution, recording, and storage of individual transactions to ensure data integrity and consistency. Transaction processing systems (TPS) are designed to handle large volumes of transactions efficiently and reliably.

The process of transaction processing typically involves the following steps:

  1. Data Input: The transaction data, such as sales orders, invoices, or payment details, are entered into the system. This can be done manually or automatically through interfaces with other systems.
  2. Validation: The system validates the transaction data to ensure it is complete, accurate, and follows predefined rules or constraints. This step helps identify any errors or inconsistencies before processing.
  3. Processing: The validated transaction is processed based on predefined business rules. This step may involve calculations, updates to databases, inventory adjustments, or any other necessary actions to complete the transaction.
  4. Recording: The processed transaction is recorded or logged in a permanent storage medium, typically a database. This ensures the transaction is securely stored and can be retrieved for future reference or analysis.
  5. Error Handling: If any errors or exceptions occur during the processing phase, appropriate measures are taken to handle them. This may involve rolling back the transaction, initiating compensatory actions, or notifying relevant parties for resolution.
  6. Confirmation: Once the transaction is successfully processed and recorded, a confirmation message or receipt may be generated for the user or customer. This serves as a proof of the completed transaction.
  7. Reporting and Analysis: Transaction data can be used for generating reports, analyzing trends, and making informed business decisions. These reports can provide insights into sales performance, inventory management, financial analysis, and other aspects of the business.

Transaction processing is critical for organizations to maintain accurate records, facilitate business operations, and provide reliable services to customers. It ensures the integrity and consistency of data, reduces errors, and supports efficient business processes.

Operations of Transaction:

The operations involved in transaction processing typically include the following:

  1. Begin Transaction: This operation marks the start of a transaction. It sets a boundary that defines the scope of the transaction and indicates that any changes made within this boundary should be treated as a single unit.
  2. Read: In this operation, the transaction reads data from the database. It retrieves the required information to perform further operations or make decisions based on the current state of the data.
  3. Write: This operation involves updating or inserting data into the database. The transaction modifies the data to reflect changes resulting from the transaction’s processing.
  4. Commit: When a transaction reaches this operation, it indicates that it has completed its processing successfully. The changes made by the transaction are permanently saved to the database, making them visible and accessible to other transactions.
  5. Rollback: If an error occurs during the transaction or if the transaction fails to complete successfully, the rollback operation is performed. This operation undoes the changes made by the transaction, restoring the database to its state before the transaction began.
  6. End Transaction: This operation signifies the end of a transaction. It releases any resources held by the transaction and indicates that the transaction has completed its processing, whether it was successful or rolled back.

These operations ensure that transactions are executed reliably and maintain the integrity and consistency of the data in the database. By providing atomicity, consistency, isolation, and durability (ACID) properties, transaction processing systems ensure that data remains accurate and reliable even in the presence of concurrent or conflicting transactions.